David Raja Bharatgas Agency Vs Deputy State Tax Officer (Madras High Court)
Conclusion: Final opportunity for hearing was provided to assessee in the mismatch of Goods and Services Tax ( GST ) returns between GSTR 3B, GSTR 1 and GSTR 9 for FY 2018-19 subject to payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order.
Held: Assessee was an authorised distributor of LPG Cylinders of Bharat Petroleum Corporation and was registered under the Goods and Services Tax Act, 2017. During the relevant period 2018-19, assessee filed its returns and paid the appropriate, however, on scrutiny of the returns it was found that there was mismatch between GSTR 3B, GSTR 1 and GSTR 9. A notice in DRC-01 was issued and assessee had filed its reply, however, the reply was stated to have no relevance to the above discrepancy which was pointed out. Assessee contended that if an opportunity was provided, they would be able to explain the alleged discrepancy. It was held that the entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 25% of the disputed taxes, after deducting the sums already paid and payment by assessee of the balance amount, if any, on intimation in compliance with the above direction shall be completed within a period of four weeks from the date of receipt of copy of this order. Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order should result in restoration of the impugned order. If there was any recovery by way of attachment of Bank account or garnishee proceedings, the same should be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. On complying with the above condition, the impugned order of assessment should be treated as show cause notice and assessee should submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections were filed, the same should be considered by the respondent and orders should be passed in accordance with law after affording a reasonable opportunity of hearing to assessee.
